CUET Accountancy - Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence- (A). Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets. (B). Compute the value of goodwill by deducting net assets from the capitalised value of average profits. (C). Ascertain the average profits based on the past few years' performance. (D). Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits. Choose the correct answer from the options given below: | PYQs + Solutions

CUET Accountancy 2025 30 May Shift 2

Partnership

Medium

common

(D), (B), (C), (A)

(B), (C), (D), (A)

(D), (A), (D), (C)

(C), (D), (A), (B)

✅ Correct Option: 4

Related questions:

3 June Shift 1

A new partner can be admitted:

4 June Shift 2

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

31 May Shift 1

Match List-I with List-II

List-I	List-II
Method of Valuation of Goodwill	Formula
(A) Average profit method	(I) Goodwill = Super profit × No. of years purchased
(B) Super Profit Method	(II) Goodwill = capitalized value of average profit - actual firm's capital.
(C) Capitalization of super profit method	(III) Goodwill = Average Profits × No. of years purchased
(D) Capitalization of average profit method	(IV) Goodwill = (Super profit/ Normal Rate of Return) × 100

Choose the correct answer from the options given below:

CUET Accountancy 2025 30 May Shift 2 PYQs

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